Aug 14, 2018

Royal Mail fined record £50m by Ofcom

Ofcom has fined Royal Mail a record £50m for breaching competition law. The penalty follows an Ofcom investigation into a complaint by Whistl, one of Royal Mail's wholesale customers, and relates to changes - including price rises - made to certain contracts in early 2014. Four years ago, Whistl became the first company to challenge Royal Mail's monopoly in delivering wholesale, or bulk, mail. It was expanding its business to compete directly with Royal Mail by delivering business letters to homes in certain parts of the UK. But Ofcom found that Royal Mail price rises meant any of its wholesale customers seeking to compete with it, as Whistl did, would have to pay higher prices in the remaining areas where it used Royal Mail for delivery. Ofcom's investigation found that Royal Mail's actions amounted to "Anti-competitive discrimination against customers, such as Whistl, who sought to deliver bulk mail".

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